Accounting for real estate assets in the retirement planner - recommendations + suggestions

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:wave: Hi folks

Real estate investing is a big part of my retirement plan. I manually track the market value of my real estate assets in the Balances sheet. Then in the Retirement Planner, those assets show up in Column B where I can select or deselect them.

That takes care of the real estate that I already own, but… I will probably buy a few more properties over time and I’m not clear on how to account for that in my Retirement Planner.

I can appreciate that the Cash Flow Forecast sheet will cover the money I need for the mortgages and rental income, etc. But what about market value and capital growth?

How are you guys doing it?

Should I be using the grouped/hidden section of the Retirement Planner sheet where we can enter Investment Adjustments to account for market value / capital growth?

Or should I be using the life events section of the Cash Flow Forecast for that?

I’m confused :confused:

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These are great questions, @alyssa.
I think I see what you’re up against with your modeling…

  • The Retirement Planning template is good at modeling asset value growth but doesn’t really offer a timing options.
  • The Cash Flow Forecast template is good at scheduling expected life changes but only for cashflow, not from asset accrual.

Neither workflow is quite the perfect fit.

I’m no expert on this type of planning but, unless you are funding through outside investors, I guess in some ways the real estate purchase down the road is just a transfer… Essentially, cashflow builds from income into savings and then into an investment… possibly with a different rate of return. Does thinking about it that way help at all? I guess that would point to trying to model through the Cash Flow Forecast tool…

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